Company

Petronet LNG Limited, one of the fastest
growing world-class companies in the Indian energy sector, has set up the country's first LNG receiving and regasification terminal at Dahej,
Gujarat, and another terminal at Kochi, Kerala. While the Dahej terminal has a nominal capacity of 15 MMTPA,
the Kochi terminal has a capacity of 5 MMTPA.

Natural Gas

Natural Gas consists mainly of Methane and small amounts of ethane, propane and butane. It is transported through pipelines but is extremely bulky. A high-pressure gas pipeline can transport in a day only about one-fifth of the energy that can be transported through an oil pipeline.

Terminals

The Company has set up South East Asia's first LNG Receiving and Regasification Terminal with an original nameplate capacity of 5 MMTPA at Dahej, Gujarat. The infrastructure was developed in the shortest possible time and at a benchmark cost. The capacity of the terminal has been expanded to 10 MMTPA and the same has been commissioned in June, 2009. The expansion involved construction of 2 additional LNG storage tanks and other vaporization facilities. The terminal is meeting around 20% of the total gas demand of the country.

CSR

Petronet LNG, as responsible Corporate/Community/Government Citizens, undertake Socio-Economic Development Programme
to supplement the efforts to meet priority needs of the community with the aim to help them become self-reliant.
These efforts would be generally around our work centres mostly in the areas of Education, Civil Infrastructure,
Healthcare, Sports & Culture, Entrepreneurship in the Community. Petronet LNG also support Water Management and
Disaster Relief in the country thereby help to bolster its image with key stakeholders.

Media Centre

Four of the top public sector companies of the country's Hydrocarbon Sector viz. Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and GAIL (India) Limited (GAIL) have invested in Petronet LNG. Each has a 12.5% equity share, leading to a total of 50% for the four.

Four of the top public sector companies of the country's Hydrocarbon Sector viz. Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and GAIL (India) Limited (GAIL) have invested in Petronet LNG. Each has a 12.5% equity share, leading to a total of 50% for the four.

Concerned that the country would not have gas supply to the tune of over 450 million standard cubic metre per day (mmscmd) required for its Greenfield and Brownfield power projects in the foreseeable future, the Empowered Group of Ministers (EGoM) is likely to discuss ways of prioritizing the applicants through a three-way plan.

?Since the total demand for gas for the proposed Greenfield and Brownfield power projects exceeds 450 mmscmd and that production of domestic gas is unlikely to be achieved in the near future, there is a need for prioritization of applicants,? according to a note prepared by the Ministry of Petroleum and Natural gas for the EGoM headed by Finance Minister Pranab Mukherjee. One way to do so would be to allot gas on priority to central and state public sector utilities for which several requests were pending ?as they would supply the entire quantity of gas to grid at regulated rates,? the note says. ?Another alternative can be by inviting bids on fixed costs and variable costs of generation on lines similar to the Ultra Mega Power Projects (UMPPs), while the third alternative could be to allot gas to all entities in the public and private sector on the basis of preparation and the likely commencement dates with the stipulation that at least 80 per cent of power would be sold to SEBs at rates approved by the power regulator,? according to the ministry.

The power ministry has prepared a list of 78 plants, which have sought for gas allocation totalling 488.48 mmscmd, excluding those already under construction. Of these, 90.46 mmscmd is for expansion projects, while the remaining 398.02 mmscmd is for Greenfield projects.

In view of the paucity of domestic gas against the huge demand registered, a policy decision needed to be taken whether any new power plant would be given gas only to the extent of 50 per cent of its capacity requirement on a particular day, the note said. ?The power project would source its remaining requirement from LNG for which sufficient capacities exist. The project may be given additional domestic gas on a fallback basis if there are no takers,? the ministry said. Initially the availability of gas from KG D6 fields was expected to increase substantially and it was even reported in some quarters that gas production would increase to 120 mmscmd within a year of commencement of production and to higher levels thereafter. However, the reality of production since 2009 has been different and it has not gone beyond 60 mmscmd and it is unlikely to increase in the near future. State-run behemoth ONGC is likely to commence production of natural gas from its C series on the western coast at a price of $5.25 per mmbtu till March 2014. Out of the allocations made for KG D6 gsa, 7.88 mmscmd on a firm basis and 0.548 mmscmd on a fallback basis have been made to customers in the Uran region.